Beginner
How to manage business expenses on FreshBooks
Quick Answer
Managing business expenses on FreshBooks involves adding expenses manually or via receipt capture, categorizing them properly, and tracking them against projects or clients. You can upload receipts, set up recurring expenses, and generate expense reports for tax purposes.
Prerequisites
- Active FreshBooks account
- Business bank account or credit card connected
- Basic understanding of expense categories
- Mobile app installed (optional)
1
Access the Expenses Section
Log into your FreshBooks account and click on Expenses in the left sidebar menu. This will take you to the main expenses dashboard where you can view all your recorded business expenses and their current status.
Tip
Use the search and filter options at the top to quickly find specific expenses by date, category, or amount.
2
Add a New Expense
Click the + New Expense button in the top right corner. Fill in the expense details including Vendor, Date, Amount, and Category. Select the appropriate payment method from the Paid From dropdown menu.
Tip
Connect your bank account or credit card to automatically import transactions and reduce manual data entry.
3
Upload Receipt and Add Details
Click Attach Receipt to upload a photo or scan of your receipt. Add a description in the Notes field and assign the expense to a specific Client/Project if applicable. Mark the expense as Billable if you plan to charge it back to a client.
Tip
Use the FreshBooks mobile app to capture receipts on-the-go using your phone's camera for instant expense recording.
4
Categorize Your Expense
Select the appropriate category from the Category dropdown menu such as Office Supplies, Travel, or Meals & Entertainment. If needed, create a new category by clicking + Add Category and entering the category name.
Tip
Use consistent categorization to make tax preparation easier and ensure accurate financial reporting.
5
Set Tax Information
In the Tax section, select the appropriate tax rate if applicable. Choose whether the amount entered is tax inclusive or tax exclusive. FreshBooks will automatically calculate the tax amount based on your selection.
Tip
Set up your default tax rates in Settings > Tax Settings to automatically apply them to new expenses.
6
Save and Track Status
Click Save to record the expense. The expense will appear in your expenses list with a status indicator. You can mark expenses as Personal, Business, or Split for mixed-use items.
Tip
Review your expense status regularly to ensure proper categorization for tax purposes.
7
Create Recurring Expenses
For regular expenses like software subscriptions, click Make Recurring when adding an expense. Set the Frequency (weekly, monthly, yearly) and End Date. FreshBooks will automatically create these expenses according to your schedule.
Tip
Set up recurring expenses for predictable costs to save time and ensure nothing gets missed.
8
Generate Expense Reports
Go to Reports in the left menu and select Expense Report. Choose your date range, client, or category filters. Click Generate Report to create a detailed breakdown of your expenses for tax filing or reimbursement purposes.
Tip
Export reports as PDF or CSV files for easy sharing with your accountant or for importing into other accounting software.
Troubleshooting
Receipt image is blurry or won't upload
Ensure the image is clear and well-lit. Try reducing the file size or converting to JPG format. Use the mobile app's built-in camera feature for better results.
Expense categories don't match my business needs
Create custom categories by going to Settings > Expense Categories and clicking + Add Category. You can also edit or delete existing categories that aren't relevant.
Bank transactions aren't importing automatically
Check your bank connection in Banking section and re-authenticate if needed. Ensure your bank supports automatic transaction feeds and try refreshing the connection.
Can't assign expense to specific project
Make sure the project exists and is active in your Projects section. If working with retainer projects, verify that the project allows expense tracking in the project settings.
Ready to get started with FreshBooks?
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